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Kash n' Karry Inc. is expected to generate free cash flow of $100 million next year and $110 million the year after. (Assume that free
Kash n' Karry Inc. is expected to generate free cash flow of $100 million next year and $110 million the year after. (Assume that free cash flow is paid at the end of each year and we are at the beginning of a year.) After that, free cash flow is expected to go grow at 3% per annum in perpetuity. The WACC for Kash n' Karry is 11%. What is the value of Kash n' Karry today? $1,329 million $1,496 million $1,569 million $1,318 million
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